In major news on UK stocks, Endeavour Mining PLC (GB:EDV) soared after the company reported mixed results for 2023. For the full year, the company’s revenue increased by over 2% to $2.12 billion compared to the previous year. However, the net profit went down to $254 million from the $507 million reported in 2022. Endeavour Mining shares were trading up by 2.4% as of writing.
Endeavour Mining is a global mining company with gold mines located in Côte d’Ivoire, Burkina Faso, and Senegal.
The End of CEO Investigation
Along with its results, Endeavour Mining also announced that it has ended the investigation related to its former president and CEO Sébastien de Montessus, stating that no evidence of bribery was found. In January, the company fired de Montessus over an allegation of “serious misconduct.” The company stated that further investigation into the matter found payments of $15 million to an undisclosed third party.
The investigation started due to an unusual payment instruction of $5.9 million issued by the former CEO. This payment was linked to the sale of an asset in previous years.
Highlights from Endeavour Mining’s Results
Endeavour Mining’s 2023 adjusted EBITDA declined 8% year-over-year to $1.05 billion. But, earnings grew by 14% to $292 million in the fourth quarter compared to the previous corresponding period.
Even though the yearly gold production was down by 8%, the company achieved its primary objective of producing 1.1Moz (million ounces) of gold in 2023. This output met its production guidance for the eleventh consecutive year. The company also maintained an AISC (all-in sustaining costs) of $967 per ounce, underscoring its position as one of the sector’s most cost-efficient producers.
During the year, Endeavour Mining returned $266 million to its shareholders through dividends and buybacks, surpassing the minimum dividend commitment of $175 million for the year by 52%.
Is Endeavour Mining a Good Buy?
According to TipRanks, EDV stock has received a Strong Buy consensus rating, backed by Buy recommendations from 11 analysts. The Endeavour Mining share price target is 2,070.45p, which implies an upside of 40% from the current trading level.
